First-time buyer schemes in Ireland 2026: Help to Buy, the First Home Scheme & the real numbers

On a €355,000 new build, a first-time buying couple needs roughly €35,500 as a 10% deposit before they touch stamp duty or solicitor's fees. Help to Buy can hand back up to €30,000 of the income tax they already paid — covering most of that deposit. Stack the First Home Scheme on top and the State can take an equity share of the rest. The schemes are real money, but every one has caps, conditions and clawbacks. Here are the actual figures, and the arithmetic that ties them together.

Help to Buy: a refund of tax you already paid

Help to Buy is the most valuable scheme for most first-time buyers, and the most misunderstood. It is not a grant in the everyday sense. It is a refund of Income Tax and Deposit Interest Retention Tax (DIRT) you paid over the four years before you apply. Revenue gives you back money that was already yours.

The refund is capped at the lowest of three numbers:

• €30,000, the absolute ceiling;
• 10% of the purchase price (or the approved valuation for a self-build); and
• the total Income Tax and DIRT you actually paid across the four relevant tax years.

If you paid only €18,000 in income tax and DIRT over four years, your refund is €18,000 — not €30,000. PRSI and USC do not count towards the figure. That four-year tax history is why the maximum tends to suit people several years into well-paid employment rather than recent graduates.

Crucially, HTB funds your deposit. The money goes towards the deposit on the new home, not towards fees or furniture. You apply through Revenue's myAccount (PAYE workers) or ROS (self-assessed) in two stages: an application stage, where Revenue confirms how much you are entitled to based on your tax record, and a claim stage, where you confirm the actual property and the contractor or solicitor verifies it. The refund is then paid to the contractor (new build) or to you (self-build) and deducted from what you owe at signing.

Treat the headline €30,000 as a maximum, not a default. Pull your Help to Buy application early so you know your real number before you go house-hunting — verify the current caps directly with Revenue, correct as of June 2026.

The First Home Scheme: the State takes a share

The First Home Scheme is a shared-equity scheme, jointly funded by the State and participating banks. Instead of lending you money, the scheme pays a chunk of the purchase price up front in exchange for owning that percentage of your home.

The maximum equity stake is up to 30% of the purchase price. If you also use Help to Buy, that maximum drops to 20%, because HTB is already plugging part of the gap. So on a €355,000 new build, the FHS could in principle contribute up to about €71,000 (20% if combined with HTB) towards the price, reducing the mortgage you need.

The catch is that the scheme owns that share. You can buy out the equity at any time — at the property's value when you redeem it, not the original price — and a service charge applies after an initial fee-free period of several years, rising over time. It is not free money; it is deferred cost. The scheme primarily targets new homes, though its scope has broadened to some additional categories — check the current eligible property types directly with the scheme. Regional price ceilings apply and differ by county and property type, so a Dublin apartment and a rural house have different limits.

The Central Bank rules: how much you can actually borrow

Two limits set by the Central Bank of Ireland govern every mortgage. For first-time buyers:

• Loan-to-income (LTI): typically up to 4 times gross annual income.
• Loan-to-value (LTV): up to 90% of the property value — meaning a minimum 10% deposit.

Both apply at once. You can never borrow more than 4× income, and never more than 90% of the price. Whichever bites first sets your ceiling.

A worked example

Take a couple with a combined gross income of €80,000.

• LTI ceiling: €80,000 × 4 = €320,000 maximum loan.
• Add a 10% deposit: if the loan is €320,000 and that is 90% of the price, the price works out at about €355,000 (€320,000 ÷ 0.90), with a deposit of roughly €35,500 (10%).
• Where HTB fits: €30,000 of that €35,500 deposit can come from Help to Buy. The couple needs only about €5,500 of their own savings for the deposit — though, as we'll see, fees push the real cash needed higher.

So a couple on €80,000 is realistically shopping in the ~€350,000–€355,000 bracket for a new build, with HTB doing the heavy lifting on the deposit. If they target a cheaper home, the deposit and HTB requirement both shrink proportionally.

One honest caveat: lenders are allowed a limited exemption allowance — a set proportion of their lending each year can exceed the LTI or LTV limits. These exceptions are discretionary, competitive and usually go to strong applicants early in the year. Plan around the standard limits and treat any exception as a bonus, not a basis.

The full cash-needed picture buyers forget

The deposit is the number everyone fixates on. It is rarely the largest surprise. Here is the realistic upfront cost on a €355,000 new build for a first-time buyer using HTB. Figures are illustrative — get exact quotes.

HTB offsets the deposit, but it does nothing for stamp duty or legal fees — those come from your own pocket. The €5,500 "remaining deposit" quietly becomes €11,000–€13,000 once everything else is counted. Budget for it from the start, not at the closing table.

Other supports worth knowing

Local Authority Home Loan

A government-backed mortgage for people who can't get sufficient funding from the banks. Administered by local authorities, it can be used for new or second-hand homes within set value and income limits. It is a genuine fallback if a bank turns you down or won't lend enough for the home you need.

Vacant Property Refurbishment Grant

Up to €50,000 to refurbish a vacant property, rising to €70,000 where the property is derelict. It is not first-time-buyer-exclusive, but for anyone willing to take on a tired or empty house — often in a town centre or rural area — it can transform the maths. Note that second-hand and vacant homes don't qualify for HTB, so this grant and HTB are mutually exclusive paths.

Rent Tax Credit

If you're renting while saving, the Rent Tax Credit reduces the income tax you pay on rent — useful context, since the income tax you do pay is exactly what builds your future HTB refund. Claim it through Revenue for the years you rent.

A realistic step-by-step timeline

1. Approval in principle (AIP). Your lender confirms, on paper, roughly how much it will lend. Get this before you view a single home — it sets your real budget.
2. HTB application stage. Apply via Revenue myAccount/ROS so you know your exact refund figure before you bid.
3. House-hunting within budget. Shop inside your AIP and the €500,000 HTB cap. Check sold prices and BER so you're not overpaying.
4. Sale agreed. You agree a price; your solicitor begins conveyancing.
5. Formal loan offer. The lender issues the binding offer after valuation. Mortgage protection and home insurance are arranged here.
6. HTB claim stage. You confirm the property; the contractor verifies and the refund is applied to the deposit.
7. Drawdown. The mortgage funds are released to your solicitor.
8. Close. Contracts complete, stamp duty paid, keys handed over.

Frequently asked questions

Can I use Help to Buy on a second-hand house?

No. Help to Buy applies only to new builds and self-builds. A previously owned, second-hand home does not qualify, no matter how recently it was last sold. If you want a refund on a second-hand purchase, HTB is not the scheme.

Can I combine Help to Buy and the First Home Scheme?

Yes, and many first-time buyers do. You can use both on the same new-build purchase. When you use HTB alongside the FHS, the State's maximum equity stake under the First Home Scheme is reduced from 30% to 20% of the purchase price, because HTB is already covering part of your deposit.

How much can I borrow as a first-time buyer in Ireland?

Under the Central Bank mortgage measures, first-time buyers can typically borrow up to four times gross annual income (loan-to-income) and up to 90% of the property value (loan-to-value), meaning a 10% deposit. A couple on €80,000 combined could borrow around €320,000. Lenders may grant a limited number of exceptions above these limits each year.

Does Help to Buy have to be paid back?

Generally no, provided you live in the property as your main home for five years after buying it. If you sell or stop living there within that period, Revenue can claw back some or all of the refund. You must also be tax-compliant for the four years your refund is based on.

What is the maximum I can get from Help to Buy?

The refund is the lowest of three figures: €30,000, 10% of the purchase price or approved valuation, or the total Income Tax and DIRT you actually paid over the previous four years. The property must also be valued at €500,000 or less, and you need a mortgage of at least 70% loan-to-value.

Sources & further reading

1. Revenue — Help to Buy Incentive: revenue.ie/en/property/help-to-buy-incentive
2. First Home Scheme: firsthomescheme.ie
3. Central Bank of Ireland — Mortgage Measures: centralbank.ie/consumer-hub/mortgage-measures
4. Citizens Information — Help to Buy & buying a home: citizensinformation.ie/housing/owning-a-home
5. gov.ie — Local Authority Home Loan: gov.ie/local-authority-home-loan
6. Vacant Property Refurbishment Grant: gov.ie/vacant-property-refurbishment-grant

This article is general information, not financial or tax advice. Scheme rules, caps and rates change frequently — verify with Revenue, the First Home Scheme, your lender and a mortgage broker before acting. Correct to the best of our knowledge as of June 2026.